The German government sold 80% of its Bitcoin, putting pressure on the world's largest cryptocurrency market.
German authorities have stepped up their efforts to crack down on Bitcoin (BTC) in recent weeks, causing the cryptocurrency to fall by more than 20% over the past month.
The selling spree began last month when the German government began selling bitcoin seized from wallets operated by the country’s Federal Criminal Police Office (BKA).
The BKA sold 900 bitcoins worth about $52 million in June as part of loot seized from a now-defunct movie piracy website.
The German government subsequently sold another 3,000 bitcoins worth about $172 million, and this week sold another 2,739 bitcoins worth about $155 million.
In addition to the amount of Bitcoin sold by the government, the latest data from blockchain analysis firm Arkham shows that the German government’s wallet sold more than 5,000 BTC on Wednesday, leaving only 15,552 bitcoins in its inventory, worth approximately $892 million, equivalent to more than 80% of its assets being sold off, with a total of 50,000 BTC seized.
Despite the sharp sell-off, Bitcoin has managed to maintain its price above the key 6-month support level of $50,000, which shows its resilience in the face of the huge selling pressure in the market over the past 30 days.
Many investors viewed the recent pullback from all-time highs as a buying opportunity, leading to a small recovery in Bitcoin prices over the past few days.
Arkham even said in a social media post that "the German government is selling, but BlackRock is buying."
The latest data shows that Bitcoin ETF market activity increased by a net 4,862 BTC worth $281 million on Wednesday, mitigating the impact of daily selling by German authorities.
Taking BlackRock, one of the issuers of the largest ETFs under management, as an example, it increased its holdings by 2,095 BTC (worth $121.16 million) today, bringing its total holdings to 312,565 BTC, worth $18.08 billion, playing an important role in stabilizing and supporting Bitcoin.
As of writing, the market's largest cryptocurrency is trading at $58,270, virtually unchanged from Tuesday's price and up slightly by 1% over the past 24 hours. Still, BTC is down more than 20% from its all-time high of $73,700 reached in mid-March.#btc #贝莱德 #ETF✅
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